Fed To Market: Dollar Carry Trade Continues

The Federal Reserve released their monthly rate setting statement after their FOMC meeting for October 2009.

The key statement of the release was:

Economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels of the federal funds rate for an extended period.

Nothing will be changing any time soon. The Fed is not too concerned about the falling value of the dollar or the continued rise in commodity prices. I suppose when we see oil trading back over $100/barrel and Gold at $1500/oz we can expect them to put the brakes on the love fest for broken banks and start paying attention to the rest of us.

The dollar retreated immediately after the statement, of course, but remains mixed over all. The biggest story of the day is that gold is breathing on the underside of $1100/oz.